While the long-term benefits of technology are undeniable, managers are increasingly concerned about ...
While the long-term benefits of technology are undeniable, managers are increasingly concerned about excess liquidity in the market forcing up valuations of 'new economy' stocks. TMT - technology, media and telecoms - seems pretty much the only game to play, with many mainstream fund managers forced to overweight the theme. Edgar van Tuyll, strategiest at Pictet, says: "As the incredible valuations reached on internet stocks cannot be explained by expected earnings figures or by the level of interest rates, many have started to believe in magic - that as internet stocks belong to a 'new eco...
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